Turn ‘Unfit’ Planning System Into A Magnet For Investment – CBI

The Confederation of British Industry (CBI) is calling on the UK government to radically reform the country’s “unfit” planning system, turning it into a magnet for investment that can drive economic growth.

In its new Planning for Growth report, the business group outlined recommendations to accelerate building projects, improve infrastructure, and boost the economy by reducing red tape.

As the government prepares for the upcoming Autumn Budget, the CBI is calling on ministers to view the consultation on the National Planning Policy Framework (NPPF) not as the endpoint but as the ‘launchpad’ for a planning overhaul.

The report highlights how the existing system has become a barrier to investment, with businesses across sectors such as energy, construction, retail, and manufacturing citing cumbersome planning processes as a key reason for halting or delaying critical projects.

John Foster, the CBI’s Chief Policy and Campaigns Officer, said: “Right now, delays in the planning system are putting a handbrake on investment and growth. It’s too slow, too cumbersome, and too bureaucratic for the country’s needs,” he said.

The report proposes a UK-wide ‘Planning for Growth Strategy’, to be implemented in partnership with devolved governments, aimed at creating a more cohesive and consistent planning framework. Among the recommendations are:

• Locally Determined Planning Fees: Empower Local Planning Authorities (LPAs) to set and retain planning fees that are aligned with local needs. This would make the system more flexible and responsive, allowing for better consideration of project complexity and economic conditions while ensuring that the revenue generated directly supports the planning process.
• Use of Independent Consultants: Allow applicants to fund independent consultants employed by LPAs for major projects, ensuring that councils have access to the specialist expertise needed to expedite decision-making and maintain a strong project pipeline.
• Local Planning Hubs: Pilot the creation of Local Planning Hubs to advise LPAs on major infrastructure and housing applications, bringing in the necessary knowledge to process significant developments crucial to achieving national housing and net-zero targets.
• Public-Private Partnerships for Brownfield Development: Encourage greater collaboration between public and private sectors to redevelop brownfield sites, using public investment to incentivize private sector involvement. This approach would reduce the financial burden on the public purse while speeding up regeneration efforts that benefit communities.

Foster called for an emphasis on ‘consistency, simplicity, and better resourcing’, to create a planning environment that attracts private capital and spreads prosperity.

The report’s release comes at a critical time, as recent government actions—such as the approval of new data centres and the reclassification of onshore wind projects—have shown some early momentum for infrastructural change.